mittee show substantial decreases over the prices obtaining in the wholesale and retail markets. The demands of the Government have been extremely heavy, and, in many instances, the contractors have been unable to meet our needs because the requirements have been much more than the estimated quantities on which the contractors were invited to bid. This has been particularly true in all kinds of office equipment, such as desks, typewriters, chairs, etc. As a consequence the departments and Government establishments have been forced to make frequent purchases in the open market at the best prices obtainable. This is a situation which could not be foreseen or avoided, because of the abnormal conditions incident to the war. Purchases made under contracts for the fiscal year 1917, so far as tabulated, aggregate $2,972,539.92. The entire purchases for the year will exceed $3,000,000. The members of the General Supply Committee have rendered commendable service, both in the negotiation of contracts and in the assistance they have given me in the enforcement of contracts. I am more than ever persuaded that the scope of the General Supply Committee should be broadened, so that it will not only assist the Secretary of the Treasury in making contracts, but its duties should be enlarged so as to embrace supervision of the contracting, purchasing, and distribution of all supplies and equipment required for Government use in the District of Columbia. In order to accomplish this it will be necessary to establish and maintain a warehouse along the same lines as those maintained by the larger industrial concerns of the country. I recommend early action looking toward the necessary legislation to accomplish this object. PANAMA CANAL. The general fund of the Treasury was charged during the fiscal year 1917 with $19,262,798.32 for Panama Canal account. Of this sum $5,949,175.26 was for construction work, and the difference, $13,313,623.06, for fortifications and miscellaneous accounts. The total expended for the canal from the general fund to June 30, 1917, reimbursable from sale of bonds not yet sold, was $236,560,375.43, and by the act of September 24, 1917, Congress authorized an issue of $225,000,000 in lieu of such unissued bonds, postal-savings bonds having been issued in lieu of Panama Canal bonds in the amount of $10,758,560. CONTINGENT FUND. I request that the Congress appropriate for the fiscal year 1919 the sum of $15,000 as a contingent fund for the Secretary of the Treasury. CONDITION OF THE TREASURY. The following is a summary of the estimated condition of the Treasury for the fiscal years 1918 and 1919: Fiscal year 1918. Balance in the Treasury June 30, 1917, free of current obligations. $1,066, 983, 361. 07 Estimated receipts: Ordinary... Panama Canal tolls, etc.. Public debt (including $663,200,000 esti mated receipts from war savings certifi cates and $3,666,233,850 from bonds $3,886, 800, 000. 00 7, 000, 000. 00 already authorized but not yet issued).. 8, 686, 932, 800.00 Estimated deficit in general fund June 30, 1918, under existing laws..... 5, 128, 203, 793. 93 From the above figures, which are based upon the Treasury Department's estimates of receipts under existing laws and the estimates of the various departments of the Government of their expenditures for the fiscal year ending June 30, 1918, it is estimated that, allowing for a balance in the general fund of about $500,000,000, it will be necessary for the Congress to authorize additional funds for the Treasury amounting to approximately $5,640,000,000. If these funds should be raised by bond issues, the following represents the estimated amount of bonds to be issued during the remainder of the current fiscal year and the estimated receipts from war-savings certificates: Bonds under the act of Sept. 24, 1917 (exclusive of $63,945,460 for the redemption of the loan of 1908–1918)....... War savings certificates (estimated)....... $3,666, 233, 850 663, 200, 000 Additional bonds that may be authorized, including the cost of issue 5, 640, 000, 000 Total...... 9, 969, 433, 850 1 These figures do not include the cost of issuing any loans that may hereafter be authorized. Public debt (including $1,009,200,000 estimated receipts from war savings certificates and $63,945,460 bonds authorized but yet to be issued)....... Total estimated receipts.. Ordinary... Panama Canal.. Public debt.... Total estimated disbursements.... $4,090, 015, 000 7,700,000 1,078, 345, 460 5, 176,060, 460 1 $12,701, 838, 980 12, 804, 034, 440 Estimated excess of disbursements over receipts, fiscal year 1919...... 7, 627, 973, 980 If loans to foreign governments making common cause with the United States in the war against Germany are to be continued during the fiscal year 1919 at the rate at which such loans are being made at the present time, of approximately $500,000,000 per month, the excess of disbursements over receipts would be further increased by $6,000,000,000. As the above estimated disbursements for 1919 do not include the interest charge on any additional loans that may be authorized by the Congress for either the fiscal year 1918 or the fiscal year 1919, or the cost of such additional bond issues, it should be pointed out that if the deficit is to be met by additional bond issues the following is the estimated amount necessary in addition to the estimated receipts from war savings certificates and $63,945,460 from bonds to redeem the loan of 1908-18: Estimated excess of disbursements over receipts, fiscal year 1919.... $7, 627, 973, 980 Loans to foreign governments..... Estimated cost of bond issues that may be authorized for 1919..... Estimated interest on bonds that may be authorized for 1918 and 1919, exclusive of interest on loans negotiated to purchase obligations of foreign governments.... Estimated total..... 6, 000, 000, 000 28, 000, 000 385, 000, 000 14,040, 973, 980 Secretary of The estimates of disbursements are not made by the the Treasury, but by the various departments concerned. The figures presented in this report represent the latest information I have received from each of the departments. It is difficult for the departments in normal times to forecast expenditures with accuracy, and this difficulty is greatly accentuated by the conditions of war. While these figures represent the situation as it appears to-day, it should be borne in mind that the exigencies of the future may cause changes, particularly with regard to the estimates for the War and Navy Departments. 1 These figures do not include the cost of issuing any loans that may be hereafter authorized or of the interest charge on such issues. ESTIMATED DISBURSEMENTS FOR WAR PURPOSES. Of the total estimated ordinary expenditures for the fiscal year ending June 30, 1918, amounting to $12,316,295,223, it is estimated that $11,527,709,023 will be for war purposes. This is, of course, exclusive of loans to foreign governments. Of the $12,701,838,980 estimated ordinary expenditures for the fiscal year ending June 30, 1919, it is estimated that $11,605,889,500 will be for war purposes. FINANCES. The following statements showing receipts, disbursements, estimates, and the condition of the Treasury are submitted: RECEIPTS AND DISBURSEMENTS. Fiscal year 1917. The receipts and disbursements of the Government during the fiscal year ended June 30, 1917, were as follows: (See details on pp. 63 to 70.) GENERAL FUND. Receipts into the general fund, including various trust-fund re ceipts, but excluding postal revenues: Disbursements, etc.—Continued. For civil establishment-Continued. Navy Department proper.. United States Shipping Board.. Other independent offices. For War Department— For Military Establishment, $401,418,- Support of the Army, $359,527,- For Naval Establishment, including con- For pensions... For interest on the public debt.... Add difference arising in adjustment of miscellaneous accounts... Total ordinary disbursements.... Excess of ordinary disbursements... Special disbursements: Purchase of obligations of foreign govern- Payment for Danish West Indian Islands. Total special disbursements.... |